<ARTICLE>                     7
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED
     GROUP, INC.'S DECEMBER 31, 1997 FORM 10-K AND IS QUALIFIED IN ITS ENTIRETY
     BY SUCH FINANCIAL STATEMENTS 
</LEGEND>
<CIK>                                        0000774624
<NAME>                                ALLIED GROUP, INC         
<MULTIPLIER>                                      1,000
<CURRENCY>                            US DOLLARS
       
                                   
<PERIOD-TYPE>                         12-MOS
<FISCAL-YEAR-END>                     DEC-31-1997
<PERIOD-START>                        JAN-1-1997
<PERIOD-END>                          DEC-31-1997
<EXCHANGE-RATE>                                       1
<DEBT-HELD-FOR-SALE>                            818,216
<DEBT-CARRYING-VALUE>                                 0
<DEBT-MARKET-VALUE>                                   0
<EQUITIES>                                       79,182
<MORTGAGE>                                            0
<REAL-ESTATE>                                         0
<TOTAL-INVEST>                                  908,244     
<CASH>                                            2,168
<RECOVER-REINSURE>                               23,906
<DEFERRED-ACQUISITION>                           50,695
<TOTAL-ASSETS>                                1,201,233
<POLICY-LOSSES>                                 378,026
<UNEARNED-PREMIUMS>                             239,763
<POLICY-OTHER>                                        0
<POLICY-HOLDER-FUNDS>                                 0
<NOTES-PAYABLE>                                  56,938            
<PREFERRED-MANDATORY>                                 0
<PREFERRED>                                      37,812
<COMMON>                                         30,532<F1>
<OTHER-SE>                                      361,740
<TOTAL-LIABILITY-AND-EQUITY>                  1,201,233
<PREMIUMS>                                      547,597
<INVESTMENT-INCOME>                              51,124
<INVESTMENT-GAINS>                                  391
<OTHER-INCOME>                                   65,570
<BENEFITS>                                      378,099
<UNDERWRITING-AMORTIZATION>                     120,256
<UNDERWRITING-OTHER>                             19,177
<INCOME-PRETAX>                                  91,912
<INCOME-TAX>                                     25,973
<INCOME-CONTINUING>                              65,939
<DISCONTINUED>                                        0
<EXTRAORDINARY>                                       0
<CHANGES>                                             0
<NET-INCOME>                                     65,436
<EPS-PRIMARY>                                     2.030
<EPS-DILUTED>                                     2.010
<RESERVE-OPEN>                                  346,663
<PROVISION-CURRENT>                             379,952
<PROVISION-PRIOR>                                (1,853)
<PAYMENTS-CURRENT>                              216,920
<PAYMENTS-PRIOR>                                147,849
<RESERVE-CLOSE>                                 359,993
<CUMULATIVE-DEFICIENCY>                           1,284
        
<FN>
<F1> The Board of Directors authorized a 3-for-2 stock split issuable 
     November 28, 1997 to shareholders of record on November 14, 1997.
</FN>